TO: ALL INSURANCE COMPANIES AUTHORIZED TO TRANSACT FIRE INSURANCE BUSINESS IN NEW YORK STATE

RE: USE OF THE TWO-TIER ANTI-ARSON APPLICATION IN THE CITY OF ROCHESTER FOR POLICIES COVERING THE PERIL OF FIRE OR EXPLOSION

The Second Amendment to Regulation 96 was issued effective July 1, 1982, to implement the provisions
of Section 168-j of the Insurance Law which require the Superintendent of Insurance to promulgate
a two-tier anti-arson application.

The required application is applicable to cities with a population of over 400,000 persons according
to the 1970 census, However, the governing board of any local municipal corporation, as defined
in Article One of the General Municipal Law, may petition the Superintendent of Insurance to
mandate the use of the anti-arson application within specific designations in its jurisdiction
for any policies issued 30 days after the Superintendent's date of approval.

Upon petition of the Council of the City of Rochester (Ordinance No. 82-416, adopted September
14, 1982), the Superintendent of Insurance in accordance with Section 168-j of the Insurance
Law and Section 62-4 of Regulation 96 (Second Amendment) mandated and approved the use of the
anti-arson application for applicable policies issued, on or after 30 days subsequent to November
3, 1982, on property insured in the City of Rochester.

The two-tier anti-arson application is therefore required in the cities of New York, Buffalo and Rochester.